Archer Raises $300M From Leading Institutional Investors To Accelerate Hybrid Aircraft Platform Development As Defense Opportunities Look Stronger Than Expected
Archer has successfully raised $301.75M from leading institutional investors, including funds managed by BlackRock, bringing its total liquidity position to approximately $1 billion. The funding will accelerate the development of its hybrid aircraft platform, particularly focusing on defense applications.
The financing involved the sale of 35,500,000 shares of Class A common stock at $8.50 per share. The company plans to use the proceeds for developing next-generation aircraft manufacturing capabilities, including batteries and composites. Archer's preliminary Q4 2024 financial results indicate GAAP operating expenses between $120-140 million and non-GAAP operating expenses within $95-110 million range.
The company launched Archer Defense in December to develop next-generation vertical-take-off-and-landing aircraft with hybrid propulsion for defense applications. CEO Adam Goldstein noted that defense opportunities appear substantially larger than initially expected.
Archer ha raccolto con successo $301,75 milioni da importanti investitori istituzionali, inclusi fondi gestiti da BlackRock, portando la sua posizione di liquidità a circa $1 miliardo. Il finanziamento accelererà lo sviluppo della sua piattaforma di aerei ibridi, con un particolare focus sulle applicazioni difensive.
Il finanziamento ha comportato la vendita di 35.500.000 azioni di Classe A a $8,50 per azione. L'azienda prevede di utilizzare i proventi per sviluppare capacità di produzione di aerei di prossima generazione, inclusi batterie e compositi. I risultati preliminari finanziari di Archer per il quarto trimestre del 2024 indicano spese operative GAAP comprese tra $120-140 milioni e spese operative non GAAP nell'intervallo di $95-110 milioni.
La compagnia ha lanciato Archer Defense a dicembre per sviluppare aerei a decollo e atterraggio verticale di nuova generazione con propulsione ibrida per applicazioni difensive. Il CEO Adam Goldstein ha osservato che le opportunità nel settore della difesa sembrano essere sostanzialmente più grandi di quanto inizialmente previsto.
Archer ha recaudado con éxito $301,75 millones de importantes inversores institucionales, incluidos fondos gestionados por BlackRock, llevando su posición de liquidez total a aproximadamente $1 mil millones. El financiamiento acelerará el desarrollo de su plataforma de aeronaves híbridas, enfocándose especialmente en aplicaciones de defensa.
El financiamiento implicó la venta de 35.500.000 acciones de Clase A a $8,50 por acción. La empresa planea utilizar los ingresos para desarrollar capacidades de fabricación de aeronaves de próxima generación, incluidos baterías y compuestos. Los resultados financieros preliminares de Archer para el cuarto trimestre de 2024 indican gastos operativos GAAP entre $120-140 millones y gastos operativos no GAAP en el rango de $95-110 millones.
La compañía lanzó Archer Defense en diciembre para desarrollar aeronaves de despegue y aterrizaje vertical de próxima generación con propulsión híbrida para aplicaciones de defensa. El CEO Adam Goldstein señaló que las oportunidades de defensa parecen ser sustancialmente más grandes de lo que se esperaba inicialmente.
Archer는 BlackRock이 관리하는 기금 등 주요 기관 투자자로부터 3억 1,750만 달러를 성공적으로 모금했으며, 총 유동성 규모를 약 10억 달러에 이르게 했습니다. 이번 자금 조달은 방위 애플리케이션에 특히 중점을 두고 하이브리드 항공기 플랫폼 개발을 가속화할 것입니다.
이번 자금 조달에는 클래스 A 보통주 35,500,000주가 주당 8.50달러에 판매되었습니다. 회사는 수익을 차세대 항공기 제조 능력을 개발하는 데 사용하려고 하며, 여기에는 배터리와 복합 재료가 포함됩니다. 2024년 4분기 초기 재무 결과에 따르면 GAAP 운영 비용은 1억 2천만 ~ 1억 4천만 달러, 비 GAAP 운영 비용은 9,500만 ~ 1억 1천만 달러 범위에 이를 것으로 보입니다.
회사는 방위 애플리케이션을 위한 하이브리드 추진력을 가진 차세대 수직 이착륙 비행기를 개발하기 위해 12월에 Archer Defense를 출범했습니다. CEO 아담 골드스타인은 방위 기회가 예상보다 훨씬 더 크다고 언급했습니다.
Archer a réussi à lever 301,75 millions de dollars auprès d'investisseurs institutionnels de premier plan, y compris des fonds gérés par BlackRock, portant sa position de liquidité totale à environ 1 milliard de dollars. Le financement accélérera le développement de sa plateforme d'avions hybrides, avec un accent particulier sur les applications de défense.
Le financement a impliqué la vente de 35 500 000 actions de classe A à 8,50 dollars par action. L'entreprise prévoit d'utiliser les produits pour développer des capacités de fabrication d'avions de nouvelle génération, y compris des batteries et des composites. Les résultats financiers préliminaires d'Archer pour le quatrième trimestre 2024 indiquent des dépenses d'exploitation GAAP comprises entre 120 et 140 millions de dollars et des dépenses d'exploitation non GAAP dans une fourchette de 95 à 110 millions de dollars.
L'entreprise a lancé Archer Defense en décembre pour développer des avions à décollage et atterrissage verticaux de nouvelle génération avec propulsion hybride pour des applications de défense. Le PDG Adam Goldstein a noté que les opportunités de défense semblent beaucoup plus grandes que prévu initialement.
Archer hat erfolgreich 301,75 Millionen Dollar von führenden institutionellen Anlegern, einschließlich von BlackRock verwalteten Fonds, gesammelt, wodurch seine gesamte Liquidität auf etwa 1 Milliarde Dollar steigt. Die Finanzierung wird die Entwicklung seiner Hybridflugzeugplattform beschleunigen, insbesondere mit Fokus auf Verteidigungsanwendungen.
Die Finanzierung umfasste den Verkauf von 35.500.000 Aktien der Klasse A zu je 8,50 Dollar pro Aktie. Das Unternehmen plant, die Erlöse zur Entwicklung von Fertigungskapazitäten für Flugzeuge der nächsten Generation zu verwenden, einschließlich Batterien und Verbundwerkstoffen. Die vorläufigen finanziellen Ergebnisse von Archer für das vierte Quartal 2024 deuten auf GAAP-Betriebskosten von 120-140 Millionen Dollar und Non-GAAP-Betriebskosten im Bereich von 95-110 Millionen Dollar hin.
Das Unternehmen hat im Dezember Archer Defense gegründet, um die Entwicklung von senkrecht startenden und landenden Flugzeugen der nächsten Generation mit Hybridantrieb für Verteidigungsanwendungen voranzutreiben. CEO Adam Goldstein stellte fest, dass die Chancen im Verteidigungsbereich erheblich größer erscheinen als zunächst erwartet.
- Secured $301.75M in new funding from institutional investors
- Total liquidity position increased to ~$1B
- Q4 2024 non-GAAP operating expenses in line with guidance
- Expanding into defense market with hybrid aircraft platform
- Significant share dilution with 35.5M new shares issued
- High operating expenses ($120-140M GAAP) in Q4 2024
Insights
The $301.75M capital raise, backed by institutional heavyweight BlackRock, represents a strategic masterstroke for Archer's defense market expansion. This funding, bringing total liquidity to
The decision to price shares at
Financial metrics reveal disciplined operational management, with Q4 2024 non-GAAP operating expenses staying within the
Most significantly, Archer's pivot towards defense applications could unlock substantial recurring revenue streams, typically featuring higher margins and longer contract durations than commercial aviation. The investment in critical capabilities like composites and batteries positions Archer to capture larger defense contracts, potentially accelerating the path to profitability.
Archer's strategic expansion into defense markets through its hybrid VTOL platform represents a calculated move to tap into the Defense Department's modernization initiatives. The hybrid propulsion system offers a important advantage over pure electric alternatives, providing extended range and payload capacity essential for military operations.
The investment in proprietary composites and battery technology is particularly strategic, addressing two critical defense requirements: durability in harsh conditions and energy independence. This vertical integration approach could yield significant competitive advantages in securing defense contracts, where control over critical components is often a key differentiator.
The timing aligns perfectly with the Pentagon's increasing focus on advanced vertical lift capabilities, especially for logistics, reconnaissance and tactical support roles. The defense market opportunity appears substantially larger than initially anticipated, potentially encompassing both domestic and allied military applications through Foreign Military Sales (FMS) programs.
- Leading institutional investors participated in this financing, including funds and accounts managed by BlackRock
-
The additional
$300M -
Archer has long maintained one of the strongest balance sheets in its industry, and this additional capital further strengthens its position bringing its total liquidity to
~ $1 billion
With its further reinforced balance sheet, Archer continues to be well-positioned for its commercialization effort. (Photo: Business Wire)
Archer launched Archer Defense in December to develop next-generation aircraft for defense applications. The first product from this division is planned to be a hybrid-propulsion, vertical-take-off-and landing aircraft.
Adam Goldstein, founder and CEO of Archer said, “I believe the opportunity for advanced vertical lift aircraft across defense appears to be substantially larger than I originally expected. As a result, we are raising additional capital to help us invest in critical capabilities like composites and batteries to help enable us to capture this opportunity and more.”
With its further reinforced balance sheet, Archer also continues to be well-positioned for its commercialization effort. Paired with the completion of construction of its ARC manufacturing facility, continued progress towards FAA certification and launch of its cross-industry consortium in the
Today, Archer is also releasing certain of its preliminary estimated financial results for the fourth quarter of 2024, reporting that its GAAP operating expenses will be within the range of
The financing provided for the purchase and sale of 35,500,000 shares of Archer’s Class A common stock at a price of
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Archer, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. A prospectus supplement relating to the shares of Class A common stock will be filed by the Company with the SEC.
About Archer
Archer is designing and developing the key enabling technologies and aircraft necessary to power the future of aviation. To learn more, visit www.archer.com.
________________________
1 Amount reflects the expected aggregate gross proceeds from this offering prior to deducting placement agent fees and estimated offering expenses
Forward-Looking Statements
This press release contains forward-looking statements regarding Archer’s future business plans and expectations, including the satisfaction of customary closing conditions related to the offering, Archer’s expected use of proceeds, statements regarding our expected financial results for the first quarter of 2025, the pace at which we intend to develop our hybrid aircraft, the potential size of the business opportunity for a hybrid aircraft, and the potential size of the defense opportunity. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in our filings with the Securities and Exchange Commission (SEC), including our most recent Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q, which are or will be available on our investor relations website at investors.archer.com and on the SEC website at www.sec.gov. In addition, please note that any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of the date of this press release. We undertake no obligation to update these statements as a result of new information or future events.
The preliminary financial estimates furnished above are based on management's preliminary determinations and current expectations as of the date hereof, and such information is inherently uncertain. The preliminary estimates provided herein have been prepared by, and are the responsibility of, management of the Company. The Company's independent registered public accounting firm has not audited, reviewed, compiled, or performed any procedures with respect to the preliminary estimates, and, accordingly, does not express an opinion or any form of assurance with respect thereto. These preliminary estimates are subject to completion of the Company's financial closing and review procedures and are not a comprehensive statement of the Company's financial results as of, or for the period ended, December 31, 2024. Actual results may differ materially from these preliminary estimates as a result of the completion of the Company's financial closing and review procedures, final adjustments and other developments that may arise between now and the time that the Company's financial results for such period are finalized. Liquidity figures presented herein are based on September 30, 2024 cash and cash equivalents, as adjusted for Archer’s preliminary results for the fourth quarter of 2024 presented herein, gross proceeds from our December 2024 capital raise and the gross proceeds from the transactions described herein and do not give effect to cash used since January 1, 2025 or expenses from the transactions described herein.
Reconciliation of Selected GAAP To Non-GAAP Results
Reconciliation of Total Operating Expenses (in millions; unaudited): A reconciliation of preliminary total operating expenses to preliminary non-GAAP total operating expenses for the three months ended December 31, 2024 is set forth below.
|
Three Months Ended December 31, 2024 |
|
|
(Low)
|
(High)
|
Total operating expenses |
|
|
Adjusted to exclude the following: |
|
|
Stock-based compensation(1) |
(23) |
(27) |
Warrant expenses(2) |
(2) |
(3) |
Non-GAAP total operating expenses |
|
|
- Amounts include stock-based compensation for options and restricted stock units issued to both employees and non-employees, including the grants issued to our founder in connection with the closing of the business combination.
- Amounts include non-cash warrant costs, for the warrants issued to Stellantis and others, in connection with certain services they are providing to the Company.
We have not reconciled our non-GAAP total operating expenses estimates because certain items that impact non-GAAP total operating expenses are uncertain or out of our control and cannot be reasonably predicted. In particular, stock-based compensation expense is impacted by the future fair market value of our common stock and other factors, all of which are difficult to predict, subject to frequent change, or not within our control. The actual amount of these expenses during Q1 2025 will have a significant impact on our future GAAP financial results. Accordingly, a reconciliation of non-GAAP total operating expenses is not available without unreasonable effort.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial results prepared in accordance with GAAP, we use a number of non-GAAP financial measures to help us in analyzing and assessing our overall business performance, for making operating decisions and for forecasting and planning future periods. We consider the use of non-GAAP financial measures helpful in assessing our current financial performance, ongoing operations and prospects for the future as well as understanding financial and business trends relating to our financial condition and results of operations.
While we use non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance and to provide incremental insight into the underlying factors and trends affecting our performance, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides useful supplemental data that, while not a substitute for GAAP financial measures, can offer insight in the review of our financial and operational performance and enables investors to more fully understand trends in our current and future performance.
In assessing our business during the quarter ended December 31, 2024, we excluded items in the following general categories from one or more of our non-GAAP financial measures, certain of which are described below:
Stock-Based Compensation Expense : We believe that providing non-GAAP measures excluding stock-based compensation expense, in addition to the GAAP measures, allows for better comparability of our financial results from period to period. We prepare and maintain our budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measure. Further, companies use a variety of types of equity awards as well as a variety of methodologies, assumptions and estimates to determine stock-based compensation expense. We believe that excluding stock-based compensation expenses enhances our ability and the ability of investors to understand the impact of non-cash stock-based compensation on our operating results and to compare our results against the results of other companies.
Warrant Expenses : Expense from our common stock warrants issued to Stellantis and vendors, which is recurring (but non-cash). We exclude warrant expense for similar reasons to our stock-based compensation expense.
Each of the non-GAAP financial measures presented in this release should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP and are presented for supplemental informational purposes only. Further, investors are cautioned that there are inherent limitations associated with the use of each of these non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in our financial results for the foreseeable future. In addition, the non-GAAP measures we use may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information in the reconciliation included in this release regarding the GAAP amounts excluded from the non-GAAP financial measures. In addition, as noted above, we evaluate the non-GAAP financial measures together with the most directly comparable GAAP financial information. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures included in this release.
Source: Archer Aviation
Text: ArcherIR
View source version on businesswire.com: https://www.businesswire.com/news/home/20250211879370/en/
Archer Media Contacts
The Brand Amp - Archer@TheBrandAmp.com
Source: Archer Aviation
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